Enter an accrual (anticipated expense)

Find this screen

Open: Nominal > Enter Transactions > Accrual Journal Entry

How to

Enter an accrual

Open: Nominal > Enter Transactions > Accrual Journal Entry

  1. Enter the details of the reverse transaction. This posts the total value of the accrued expense to the balance sheet to reverse the periodic postings.
    1. Reversal Date: Date of the reverse transaction. This is usually a date in the future.

    2. Total value: Estimated value of the actual bill.
    3. Reference and Narrative : For all the transactions.
  2. Specify the Transaction Analysis code, if required.
  3. Choose the nominal account for Balance Sheet postings. This defaults to the accrual account set on the Default Nominal Accounts screen.
  4. Choose the nominal account for Profit and Loss postings. This is usually the same nominal account as the actual bill will be posted to.
  5. Enter the Date and Value for each required periodic transaction.

    The total value of the periodic transactions must equal the Total value of the reverse transaction.

    The routine suggests tomorrow as the first periodic date, plus dates for each subsequent posting at regular intervals.

  6. To save and post all the transactions, click Post.

Useful info

Set up a nominal account for accruals

To set up your accrual nominal account:

  • Create a nominal account for your accruals to post the periodic transactions to.

  • Set this as the default nominal account for accruals so it is automatically displayed when accruals are set up.

About accruals

Use an accrual to budget for an upcoming expense that you normally pay in arrears but want to account for across a number of periods. These are usually used to cover costs such as gas or electricity where you are charged quarterly.

Periodic transactions are posted to account for the expense on your Profit and Loss each period. These are balanced against the Accruals account on your balance Sheet (where it is classed as a liability). A final reversing accrual journal is posted which cancels out the payments paid to the expense account and the liability on your balance sheet.

When you eventually receive the actual bill you can record it as an expense on your profit and loss without the worry of it being accounted for twice.

Applying an accrual

To apply an accrual you:

  1. Enter the accrual details. You must specify:
    • The date on which the accrual periodic transactions will be reversed and the total amount of the accrual.
    • The Balance Sheet nominal account that will temporarily hold the transaction. If you have a default accruals nominal account specified Sage 200cloud will automatically display this to you.
    • The Profit and Loss nominal account into which the payment amount will be posted over the course of the accrual period.
    • The number, amount and date of individual payments to be posted to the Profit and Loss nominal account.
  2. Post the payment that was accounted across a number of periods. You could post this as a:
    • Purchase payment to a supplier account.
    • Nominal payment (with or without VAT).

What happens when

I post an accrual?

  • An reverse transaction is posted to the following nominal accounts:

    Nominal Account Debit Credit

    Accrual Account

    (Balance sheet)

    Total Value

    Expense Account

    (Profit and Loss)

    Total Value
  • Period transactions are posted to the following nominal accounts:

    Nominal Account Debit Credit

    Accrual Account

    (Balance sheet)

    Period Value

    Expense Account

    (Profit and Loss)

    Period Value

Note: A single URNThe unique reference number assigned to a complete transaction to assist in tracing the progress of the transaction through Sage 200. This number is 12 digits long and comprises of: 3 digits for the user number, 2 digits for the source module in which the transaction was created, and a 7 digit sequential reference number. is applied to all the transactions.